Click here to read full story “Why there’s no reason to panic about rising rates”
We’ve looked at fixed vs. variable before…….
Here is a straight example – with no increase in prime for the variable at Prime -.40 currently available through various lenders (many signals indicate we may enjoy this ride a little while longer)
The visual comparison gives you an idea how much you can SAVE and how fast you could reduce your mortgage balance if you were to incorporate a strategy to use the 20/20 prepayment privileges available!
What would that ending balance be if you paid your variable at the 5 year payment? An extra $6879.52 applied over the term to reduce your principle and interest costs even further.
